Fiscal fixes too soon could make Fed's job harder: Kocherlakota

GOLDEN VALLEY, Minnesota (Reuters) - U.S. Congressional action to fix the long-run federal budget by raising taxes or shrinking spending could hurt the recovery if the fixes go into effect over the short term, a top Federal Reserve official said on Tuesday.

The decision to allow payroll taxes to rise this year already puts downward pressure on the economy, Minneapolis Federal Reserve Bank President Narayana Kocherlakota told the Financial Planning Association of Minnesota.

If Congress takes further steps to reduce fiscal imbalances in 2013 and 2014, "it will make my job harder," Kocherlakota said.